CIPC annual returns made easy with LMS
Submitting the CIPC annual returns for your company easily falls under the radar when the business owner is focused on the management of his/her operation. The consequences of not meeting the filing requirements for these returns can be detrimental to the compliance status of your company and can cause significant administration headaches.
Through professional secretarial services, we can help ensure that your company meets the deadlines for its annual return submission to the CIPC. Our years of experience and know-how of the regulations surrounding the CIPC afford us the best skills to complete these returns accurately, on your behalf.
What are CIPC annual returns?
An annual return with the Companies and Intellectual Properties Commission (CIPC) is a statutory return that all registered companies are required to complete to retain their active status. Failure to complete your CIPC annual returns could result in the deregistration of your company. The legal effect is that the juristic personality is withdrawn, resulting in the termination of the company’s existence.
Non-compliance with the Companies Act is declared 30 business days from the date that the company was due to file its annual return. This due date is determined annually by the initial establishment date of the company. To better mitigate the risk of missing your company’s annual returns, seek assistance from the professionals at LMS.
Why must my company file an annual return?
Submitting annual returns with the CIPC, and maintaining compliance, assures an active registration with the CIPC. Without it, the CIPC can assume that your company is inactive and begin an automatic deregistration process.
Where an annual return is found to be incorrect, your company may face consequences of non-compliance. These consequences can occur in the following ways:
- Should your annual return contain a miscalculation of the company’s annual turnover or incorrect information, you will be liable to a fine or imprisonment as it is a direct contravention of the Companies Act.
- The CIPC can commence an investigation of your company to determine whether or not compliance with the Companies Act is met. Once this investigation is complete, the CIPC will either excuse the matter, set a meeting to resolve the issue, refer the matter to the National Prosecuting Authority or issue a compliance notice.
- If a compliance notice has been issued but not met, the CIPC will process an application to the court to impose a fine for non-compliance.
- The CIPC can apply for a winding-up application on the grounds of fraudulent or illegal behaviour from your company if a compliance notice has been issued and ignored.
What are the advantages of filing an annual return?
The primary advantage of submitting your company’s annual return is that it maintains full compliance with the CIPC. The registration and compliance of your company positions your business to grow and allows room for more opportunities.
The successful submission of your annual return maintains CIPC registration. Should you not comply by not filing these returns or filing them late, you will be subject to penalty fees and can face the deregistration of your company.